The Ethiopian Investment Commission (EIC) has held discussions with Nigeria’s Zenith Bank on potential entry into the country’s newly liberalised banking and financial services sector, as Addis Ababa moves to attract foreign capital into one of Africa’s last closed financial markets.

Zinabu Yirga, deputy commissioner of the EIC, told representatives of Zenith Bank that Ethiopia was ready to host large and credible international financial institutions. He cited the country’s position as the third-largest economy in sub-Saharan Africa, expanding regional and global trade links, and ongoing infrastructure and industrial projects as key drivers creating long-term opportunities for financial sector investors.

The talks come after Ethiopia enacted landmark legislation allowing foreign banks to operate in the domestic market for the first time. Under the revised banking law and directives issued by the National Bank of Ethiopia, foreign lenders can establish subsidiaries, open branches or representative offices, or acquire minority stakes in local banks, with total foreign ownership capped to ensure Ethiopian majority control.

Zenith Bank said it was actively assessing opportunities created by the reforms. Olukayode Akinbinu, the bank’s group head of foreign branches and international market expansion, said Ethiopia’s fast-growing economy, recent policy changes and the opening of banking and financial services had strengthened the bank’s interest.

He said the lender was evaluating investment options with a focus on digital and technology-driven financial services, alongside financing large government-led infrastructure and development projects.

The opening of the banking sector forms part of Ethiopia’s broader economic reform agenda, which also includes the liberalisation of telecommunications, changes to the foreign exchange regime and the launch of a securities exchange. Policymakers have said the reforms are intended to mobilise foreign capital, deepen financial inclusion and modernise the country’s financial system.

Headquartered in Lagos, Zenith Bank operates across Africa and in key international financial centres, providing corporate, retail, digital and infrastructure financing services.

The commission said it would work with relevant stakeholders to support Zenith Bank as it explores investment and partnership opportunities within Ethiopia’s financial sector, signalling openness to further engagement with regional and global lenders as liberalisation progresses.